(FDIG) Fidelity Crypto Industry - Overview

The Fidelity® Crypto Industry and Digital Payments ETF (NASDAQ: FDIG) is a U.S.–registered equity fund that allocates at least 80% of its net assets to stocks and depositary receipts that track a global index of companies involved in cryptocurrency, blockchain infrastructure, and digital-payments processing. Because the ETF is classified as “non-diversified,” it may hold a relatively concentrated portfolio of issuers, which can amplify both upside potential and downside risk.

Key market metrics that can help gauge FDIG’s outlook include: (1) the total market capitalization of publicly listed crypto-related firms, which has hovered around $150 billion in 2024 after a 12% YoY decline; (2) the volume of global digital-payments transactions, projected to exceed $8 trillion in 2025, driven by continued adoption of contactless and mobile payments; and (3) the hash-rate growth rate for major proof-of-work blockchains, a proxy for network security and miner profitability, which has risen roughly 5% quarter-over-quarter in 2023-24.

From a macro perspective, FDIG’s performance is sensitive to three primary drivers: regulatory developments (e.g., U.S. SEC rulings on crypto assets), macro-economic conditions that affect risk appetite (interest-rate policy, inflation expectations), and technological adoption cycles (enterprise blockchain deployments, central-bank digital currency pilots).

Given the fund’s concentrated exposure, investors should monitor the concentration risk metrics (e.g., top-10 holdings weight) and the correlation of FDIG’s returns with broader equity indices, which has averaged 0.45 in the past 12 months.

For a deeper, data-driven dive into FDIG’s risk-return profile and sector exposure, you might find ValueRay’s analytical tools useful.